Instamojo launches InstaCash to help MSMEs avail working capital up to Rs 1 lakh
Bengaluru-based Instamojo said it will instantly transfer the amount to MSMEs once a request has been placed, including convenience and processing fee charges.
Full-stack MSME solutions provider
on Friday launched InstaCash, a feature enabling merchants to gain instant access to working capital, and ensure business continuity.In a statement, the Bengaluru-based fintech startup said that merchants can avail loans up to Rs 1 lakh for a period of seven to 14 days through InstaCash.
![Instamojo](https://images.yourstory.com/cs/21/98e25df018b511e988ceff9061f4e5e7/Image7lyh-1593164044577.jpg?fm=png&auto=format)
The founders of Instamojo (L to R): Akash Gehani, Sampad Swain, and Aditya Sengupta
Instamojo, started in 2012 as a digital payment solution provider, has announced the new feature at a time when the MSME sector is facing an unprecedented financial crisis. Due to the COVID-19 pandemic and lockdown, MSMEs have been seeing near-zero revenue.
With a lack of funds to recommence production, and with hefty rents and salaries to pay, many of them have shut shop. As the lockdown restrictions are eased, surviving MSMEs and merchants are picking themselves up, and are in desperate need of cash.
Sampad Swain, Co-founder and CEO, Instamojo, said the current situation has left MSMEs "reeling under pressure to source funds to sustain operations." According to him, InstaCash will empower MSMEs through digitisation, address key challenges, and facilitate smooth operations.
Instamojo claimed InstaCash will instantly transfer the amount to a customer once a request has been placed, including convenience and processing fee charges. It stated that availing funds instantly in this manner will help MSMEs manage immediate operational expenses until they receive the next cycle of revenue.
Reporting 25-30 percent growth in its merchant base since the lockdown ensued, Instamojo also introduced mojoPlus - a reward programme for Instamojo merchants.
mojoPlus enables merchants to earn points on transactions, and redeem them to avail discounts on Instamojo fees, receive coupons, and purchase apps from the Instamojo app store.
Founded by Sampad Swain, Akash Gehani, and Aditya Sengupta, Instamojo, in 2018, revamped itself into a financial services player. It diversified into providing logistics and lending products for MSMEs, named MojoXpress and MojoCapital, respectively.
In 2019, the startup, which hosts over one million merchants on its platform, launched ‘CreditBook’ – a digital khata to help digitise transaction records.
It has also started Priority KYC, an initiative to help MSMEs set up their store online in less than five minutes. Through this initiative, new merchants on the Instamojo platform can get KYC documents approved within 24 hours of uploading.
In January 2019, Instamojo raised Series B funding from Gunosy Capital, Japanese payments firm AnyPay, and existing VCs. In November 2014, it raised $2.6 million in Series A funding from Kalaari Capital, Blume Ventures, 500 Startups, and others.
Edited by Suman Singh